How Do Time-Weighted Average Prices (TWAPs) Mitigate Oracle Manipulation Risks?

TWAPs calculate the average asset price over a specific time interval, rather than relying on a single snapshot price. This averaging mechanism makes it significantly more expensive and difficult for an attacker to manipulate the reported price.

An attacker would need to sustain a manipulation for the entire averaging period, which increases the capital required and the risk of the attack being unsuccessful.